Get the Top 4 Points to note on the new Insurance Requirements for your Helper which will be enforced from 1 Oct 2017.

In May 2017, MOM announced that changes will be made to the Personal Accident Insurance (PAI) requirements for Foreign Domestic Workers (FDWs) with the aim to better protect the welfare of FDWs and adequately compensate them in the event of death or permanent disability due to accidents during their employment in Singapore.

To help employers better understand the announcement made by MOM, our insurance specialists has summed up 4 points to note on the PAI requirements changes for FDWs and how the changes affect the employers:

1. It matters if your helper joins you before or after 1 Oct 2017

When will you apply or renew the FDW Work Permit for your helper? If you are submitting a new application or renewal of the permit with MOM before 1 Oct 2017, would you be exempted from fulfilling the PAI new requirements? For FDW applications and work permit renewals from 1 Oct 2017 and onwards, MOM officers may perform checks as per requirements. If the PAI cover amount bought for the maid is lower than S$60,000 (as per MOM requirements w.e.f. 1 Oct 2017), MOM could request the employer to do the necessary top up.

If you are working on the application/renewal of the permit that commences before 1 Oct 2017, skip the article for now and jump to compare and buy domestic helper insurance, as you are among the last batch eligible for the old PAI policy, but do consider getting the additional PAI cover.

2. Pay higher premium to meet a higher minimum sum assured of $60,000

With effect from 1 Oct 2017, employers need to purchase insurance with a minimum sum assured of S$60,000 instead of the current S$40,000 for the personal accident cover. It is expected that the annual premiums to be paid by employers could increase by about S$7 to S$15 due to this change.

Take a look at the annual premium range of the most popular domestic helper insurance in Singapore here.

3. MOM requirements 

In normal cases, employers bear the responsibility of purchasing the PAI policy and file the claims for FDWs in the event of an accident. With the changes, FDWs or their legal representatives can file the claims directly with insurers if the employer is unable to do so. If FDWs or their legal representatives are unable to file the claims, an MOM-appointed representative can be directed to act on their behalf.

4. Unification of the PAI coverage and period of cover

With the revision made by MOM, insurers shall have the same definition towards the coverage of PAI and the period of cover. Employers are advised to check upon the terms based on the MOM standard. Effective from 1 Oct 2017, MOM will require PAI to cover all sudden, unforeseen, and unexpected incidents that result in the death or permanent disability of the FDW. Insurers will not be permitted to impose additional conditions, exceptions or exclusions except for pre-existing conditions, suicide and those specified by the Controller for Work Passes. This ensures that all FDWs and their beneficiaries receive the same protection.

Also, the period of PAI cover must start when the FDW first arrives in Singapore to the date she returns to her country, or to the date her new work permit is issued if she changes employers, in line with employers’ existing responsibility.

As the last review of PAI coverage was in 2008, and with the rise in helper’s median wages over the years, the increase in PAI coverage is necessary to protect the FDWs in ensuring adequate compensation to them in the event of accidental death and permanent disability during their employment term in Singapore.

As an employer, other than fulfilling your duty, getting an adequate PAI cover for your helper can ease your worries from unforeseeable amounts of claims over accidents. If you have any questions on your domestic helper insurance, please contact us via email and we are ready to help.

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